The US ‘Fortune’ website reported on November 13 that the Swiss regulator introduced new regulations on October 25 that allow the Swatch Group to reduce the supply of spare parts for other brands of watches, a move that may cause Swiss luxury watch manufacturing is in trouble.
The Swatch Group is the world’s largest watch company and has a near monopoly position in the production and sale of Swiss watch movements and accessories. The majority of Swiss luxury watch manufacturers are small and do not have the financial resources to manufacture watch parts independently. 75% of the core mechanical parts of Swiss luxury watches come from Swatch.
The report pointed out that the new regulations caused a shock in the Swiss luxury watch manufacturing industry, and some even suspected that the Swiss luxury watch industry would be eliminated. Industry analysts point out that investors may merge small manufacturers, and merge between manufacturers to form large groups.
Swatch’s move is to use more parts for the production of private label watches. It is estimated that the new regulations will increase sales of Swatch watches by $ 4 billion. It is worth noting that some manufacturers are beginning to consider developing China into their new supplier, but at least 50% of the watches with the ‘Made in Switzerland’ label are made in Switzerland.